Allure of Swiss-Franc Bonds
Could Diminish With Tax Plan

Swiss franc-denominated issues, long a haven for foreign bond investors, could see a falloff in demand if the government goes ahead with plans to levy a withholding tax.

The potential tax, which would apply to bonds from foreign issuers, is an answer to European Union pressure to assist in combating international tax avoidance. Switzerland currently withholds 35% of the coupon payment for bonds issued within the country. But the nearly 258.1 billion euro ($243.34 billion) market for foreign issued Swiss franc bonds isn't...